India: Met coke prices under pressure on subdued demand, lesser trades

• Premium coking coal prices down $18/t w-o-w
  
  
• DGTR decision awaited on import restrictions
  
  

Indian met coke prices inched down in some markets w-o-w. Current price indications are seen in the range of INR 34,800/tonne (t) ex-works Jajpur. A few merchant cokeries are heard offering at above INR 35,000/t. Prices in western India were heard to have reduced to INR 32,900/t, down INR 200/t.

The week has witnessed limited trade activities. A deal of about 5,000 t of coke was heard concluded at INR 30,000-32,000/t in southern India. Bearish steel market sentiments, range-bound pig iron prices and falling steel prices have weighed on met coke prices.

Decision on met coke import restrictions in India expected by month-end

On the other hand, fresh bookings of imported met coke have remained slow amidst the awaited clarity on import restrictions. An inter-ministerial meeting was scheduled on 15 July, 2024, to discuss the safeguard recommendations of the Directorate General of Trade Remedies (DGTR) on the import of low ash met coke. The meeting was organized by the Ministry of Commerce & Industry with other stakeholders.

Sources indicate that a decision regarding the restriction on met coke imports to India is likely by the end of this month. The outcome of the upcoming meeting will be crucial in determining the future of met coke imports into India. Imported coke prices are heard to be at levels of around INR 29,0000-30,000/t

Prices of coke CFR India remained steady as buyers anticipated further price declines amid a downtrend in the coking coal market and ample supply at Indian ports. Also, end-users were heard delaying metallurgical coke procurement, expecting prices to drop further.

Coking coal prices down w-o-w

Australian premium hard coking coal (PHCC) prices dropped $18/t w-o-w to $252/t FOB w-o-w.

Coking coal prices moved down due to slow demand, with traders facing increasing pressure to lower their offers amidst an oversupply. The market is structurally weak, as evidenced by the reselling interest, which clearly indicates market fragility.

Participants noted that numerous unsold June, July, and August laycan cargoes were exerting near-term pressure on the market. This pressure is due to the availability of additional cargoes from miners and reselling interest from end-users, while demand remains sluggish.

Outlook

Indian met coke prices are not expected to see any variation until any firm decision comes from DGTR on import restrictions. Also, with falling coking coal prices, the met coke market may experience a downward pull.